Revenue contraction of 23.1% in 2026Q4 combined with an operating margin of -0.9% highlights the company's failure to maintain profitability amidst declining consumer demand.
| Metric | Mar'26 | Mar'25 | Mar'24 | Apr'23 | Apr'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 |
|---|
| Sales/Revenue | 3.47B | 4.44B | 4.44B | 5.62B | 5.65B | 5.65B | 5.55B | 5.24B | 4.72B | 4.49B | 4.71B | 4.37B | 3.31B | 2.18B | 1.3B | 803.34M |
| Revenue Growth % | -21.79% | 0% | -20.95% | -0.62% | 0% | 1.86% | 5.98% | 11% | 5.01% | -4.63% | 7.79% | 32.04% | 51.75% | 67.54% | 62.11% | - |
| Cost of Goods Sold | 1.43B | 1.62B | 1.62B | 1.9B | 1.91B | 1.91B | 2.28B | 2.06B | 1.86B | 1.83B | 1.91B | 1.72B | 1.29B | 875.17M | 549.16M | 357.27M |
| COGS % of Revenue | 41.11% | 36.38% | 36.38% | 33.72% | 33.78% | 33.78% | 41.07% | 39.29% | 39.42% | 40.79% | 40.64% | 39.43% | 39.11% | 40.11% | 42.17% | 44.47% |
| Gross Profit | 2.05B | 2.83B | 2.83B | 3.72B | 3.74B | 3.74B | 3.27B | 3.18B | 2.86B | 2.66B | 2.8B | 2.65B | 2.02B | 1.31B | 753.1M | 446.06M |
| Gross Margin % | 58.89% | 63.62% | 63.62% | 66.28% | 66.22% | 66.22% | 58.93% | 60.71% | 60.58% | 59.21% | 59.36% | 60.57% | 60.89% | 59.89% | 57.83% | 55.53% |
| Gross Profit Growth % | -27.6% | 0% | -24.11% | -0.53% | 0% | 14.46% | 2.86% | 11.23% | 7.44% | -4.87% | 5.65% | 31.33% | 54.31% | 73.49% | 68.83% | - |
| Operating Expenses | 1.96B | 3.58B | 3.58B | 3.04B | 2.84B | 2.84B | 3.46B | 2.44B | 2.11B | 1.97B | 1.62B | 1.39B | 1.01B | 676.55M | 505.41M | 309.2M |
| OpEx % of Revenue | 56.53% | 80.55% | 80.55% | 54.19% | 50.25% | 50.25% | 62.39% | 46.68% | 44.71% | 43.86% | 34.42% | 31.81% | 30.44% | 31.01% | 38.81% | 38.49% |
| Selling, General & Admin | 1.96B | 2.58B | 2.58B | 2.71B | 2.53B | 2.53B | 2.46B | 2.08B | 1.77B | 1.54B | 1.43B | 1.25B | 926.9M | 621.54M | 464.57M | 279.82M |
| SG&A % of Revenue | 56.53% | 58.1% | 58.1% | 48.19% | 44.8% | 44.8% | 44.39% | 39.61% | 37.44% | 34.29% | 30.3% | 28.63% | 28% | 28.49% | 35.67% | 34.83% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 997M | 997M | 337M | 308M | 308M | 999M | 370M | 343M | 430M | 194.1M | 139.2M | 81M | 55.02M | 40.85M | 29.38M |
| Operating Income | 82M | -752M | -752M | 679M | 903M | 903M | -192M | 735M | 749M | 690M | 1.18B | 1.26B | 1.01B | 630.01M | 247.68M | 136.87M |
| Operating Margin % | 2.36% | -16.93% | -16.93% | 12.08% | 15.97% | 15.97% | -3.46% | 14.03% | 15.87% | 15.35% | 24.94% | 28.75% | 30.45% | 28.88% | 19.02% | 17.04% |
| Operating Income Growth % | 110.9% | 0% | -210.75% | -24.81% | 0% | 570.31% | -126.12% | -1.87% | 8.55% | -41.28% | -6.52% | 24.68% | 60.03% | 154.36% | 80.97% | - |
| EBITDA | 203M | -559M | -559M | 858M | 1.1B | 1.1B | 57M | 960M | 957M | 910M | 1.36B | 1.4B | 1.09B | 684.3M | 285.24M | 162.41M |
| EBITDA Margin % | 5.84% | -12.58% | -12.58% | 15.27% | 19.38% | 19.38% | 1.03% | 18.33% | 20.28% | 20.25% | 28.83% | 31.92% | 32.86% | 31.37% | 21.9% | 20.22% |
| EBITDA Growth % | 136.31% | 0% | -165.15% | -21.72% | 0% | 1822.81% | -94.06% | 0.31% | 5.16% | -33% | -2.66% | 28.27% | 58.98% | 139.91% | 75.63% | - |
| D&A (Non-Cash Add-back) | 121M | 193M | 193M | 179M | 193M | 193M | 249M | 225M | 208M | 220M | 183.2M | 138.4M | 79.7M | 54.29M | 37.55M | 25.54M |
| EBIT | 82M | 52M | 52M | 837M | 1.02B | 1.02B | 558M | 659M | 884M | 900M | 1.19B | 1.26B | 1.01B | 630.74M | 250.97M | 140.7M |
| Net Interest Income | 89M | 37M | -6M | -24M | 18M | -43M | -18M | -38M | -22M | -4M | -1.7M | -200K | -400K | -1.52M | -1.5M | -1.86M |
| Interest Income | 89M | 0 | 0 | 0 | 18M | 0 | 0 | 0 | 300K | 0 | 0 | 15K | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | -37M | 6M | 24M | 0 | 43M | 18M | 38M | 22.3M | 4M | 1.7M | 215K | 400K | 1.52M | 1.5M | 1.86M |
| Other Income/Expense | 25M | 25M | 25M | -31M | 12M | 12M | -23M | -114M | -7M | -1M | -2.8M | -1.2M | -500K | -2.89M | 1.13M | -3.65M |
| Pretax Income | 107M | -727M | -727M | 648M | 915M | 915M | -215M | 621M | 742M | 689M | 1.17B | 1.26B | 1.01B | 627.13M | 248.82M | 133.22M |
| Pretax Margin % | 3.08% | -16.37% | -16.37% | 11.53% | 16.18% | 16.18% | -3.87% | 11.86% | 15.72% | 15.33% | 24.88% | 28.73% | 30.44% | 28.74% | 19.11% | 16.58% |
| Income Tax | 27M | 452M | 452M | 29M | 92M | 92M | 10M | 79M | 150M | 137M | 334.6M | 374.8M | 346.2M | 229.53M | 101.45M | 60.71M |
| Effective Tax Rate % | 25.23% | -62.17% | -62.17% | 4.48% | 10.05% | 10.05% | -4.65% | 12.72% | 20.22% | 19.88% | 28.54% | 29.85% | 34.36% | 36.6% | 40.77% | 45.57% |
| Net Income | 92M | -1.18B | -1.18B | 616M | 822M | 822M | -223M | 543M | 592M | 553M | 839.1M | 881M | 661.5M | 397.6M | 147.36M | 72.51M |
| Net Margin % | 2.65% | -26.61% | -26.61% | 10.96% | 14.54% | 14.54% | -4.02% | 10.37% | 12.54% | 12.31% | 17.81% | 20.15% | 19.98% | 18.22% | 11.32% | 9.03% |
| Net Income Growth % | 107.78% | 0% | -291.88% | -25.06% | 0% | 468.61% | -141.07% | -8.28% | 7.05% | -34.1% | -4.76% | 33.18% | 66.37% | 169.81% | 103.24% | - |
| Net Income (Continuing) | 80M | -1.18B | -1.18B | 619M | 823M | 823M | -225M | 542M | 592M | 552M | 837.7M | 881M | 661.5M | 397.6M | 147.36M | 72.51M |
| Discontinued Operations | 13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 4M | 4M | 1M | 1M | -1M | -1M | 1M | 3M | 3.8M | 2.4M | 3.8M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.77 | -10.00 | -10.00 | 4.60 | 5.39 | 5.39 | -1.48 | 3.58 | 3.82 | 3.29 | 4.44 | 4.28 | 3.22 | 1.97 | 0.78 | 0.31 |
| EPS Growth % | 107.7% | 0% | -317.39% | -14.66% | 0% | 464.19% | -141.34% | -6.28% | 16.11% | -25.9% | 3.74% | 32.92% | 63.45% | 152.56% | 151.61% | - |
| EPS (Basic) | 0.77 | -10.00 | -10.00 | 4.65 | 5.49 | 5.49 | -1.48 | 3.62 | 3.89 | 3.33 | 4.50 | 4.35 | 3.27 | 2.02 | 0.80 | 0.40 |
| Diluted Shares Outstanding | 119.85M | 118.26M | 117.01M | 134M | 152.5M | 152.5M | 150.71M | 151.61M | 155.1M | 168.12M | 189.05M | 205.87M | 205.64M | 201.54M | 189.3M | 183.38M |
| Basic Shares Outstanding | 119.31M | 118.26M | 117.01M | 132.53M | 149.72M | 149.72M | 150.71M | 149.77M | 152.28M | 165.99M | 186.29M | 202.68M | 202.58M | 196.62M | 158.26M | 143.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Structural brand demand erosion
As reported in recent financial filings, Capri Holdings experienced a 23.1% year-over-year revenue decline in 2026Q4, signaling that the company's multi-tier luxury strategy is struggling to maintain top-line momentum amidst a broader shift in consumer discretionary spending patterns across its core North American wholesale and retail channels.
The consistent negative growth rates observed over the last ten quarters suggest that the brand portfolio is facing more than just cyclical headwinds. Investors should monitor whether the persistent revenue decay reflects a fundamental loss of brand relevance rather than temporary market volatility.
Based on the latest income statement data, Capri's gross margin has fluctuated near 60%, yet operating margins have collapsed to -0.9% in 2026Q4, indicating that the company lacks the necessary pricing power to offset rising operational costs and the heavy reliance on promotional activity to clear inventory.
The inability to maintain positive operating margins during periods of revenue contraction highlights the high fixed-cost burden inherent in the company's retail footprint. This suggests that without a significant pivot toward a more efficient direct-to-consumer model, profitability will remain highly sensitive to top-line fluctuations.
According to the provided quarterly data, Capri's SG&A expenses have remained stubbornly high relative to revenue, with the company reporting an operating loss of $7 million in 2026Q4, demonstrating a failure to achieve the operating leverage required to scale profitability in a declining revenue environment.
The lack of meaningful SG&A discipline suggests that the company's fixed-cost structure is currently misaligned with its current revenue scale. This warrants further investigation into whether management can successfully rationalize the cost base without further damaging the long-term equity of its luxury brands.
As evidenced by the erratic net income figures, including a $645 million loss in 2025Q4, Capri's reported earnings are heavily impacted by non-operating items and significant stock-based compensation, which totaled $9 million in 2026Q4, complicating the assessment of the company's true underlying operational profitability.
The frequent swings between profitability and deep losses suggest that the bottom line is not a reliable indicator of core business health. Investors should focus on adjusted metrics that strip out these non-recurring charges to better understand the company's actual cash-generating capabilities.
While some may argue that the current valuation reflects a temporary trough, the 21.79% revenue decline and the collapse of operating margins to 2.36% suggest that Capri may be facing a structural brand sunset that could permanently impair its ability to compete with higher-margin luxury peers.
The market's potential over-reliance on the prestige of Versace to anchor the group may be misplaced if the Michael Kors segment continues to drag down consolidated performance. This scenario implies that the company's current trajectory may lead to further balance sheet strain rather than a recovery.
Quick answers to the most common questions about buying CPRI stock.
For fiscal year 2026, Capri Holdings Limited (CPRI) reported total revenue of $3.47B. This represents a 332.4% increase compared to $803.3M in 2011.
Capri Holdings Limited (CPRI) is profitable, generating $92.0M in net income for the fiscal year ending 2026 with a net profit margin of 2.6%.
Capri Holdings Limited (CPRI) reported an operating income of $82.0M, resulting in an operating profit margin of 2.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Capri Holdings Limited (CPRI) generated $2.05B in gross profit for the year, representing a gross profit margin of 58.9%. This demonstrates the company's core pricing power and production efficiency.